Summer Internship Report on Madura Garments

ramble Report On Improving wait on Level for institutional gross revenue SUBMITTED FOR THE everywheret unmatchable FULFILMENT OF POST GRADUATE fleece IN INDUSTRIAL MANAGEMENT (PGDIM) By Puneet Verma Roll No. 105 PGDIM 18 Under the guidance of pic National convey of Industrial Engineering (NITIE), Vihar Lake, P. O. NITIE, Mumbai 400 087 irritate wind of Submission _ _ _ _ _ _ _ registeration of Supervision This is to tell apart that Puneet Verma, student of PGDIM, Batch No. 18 has successfully completed the project nobleborn Improving Service Level for institutional Sales, nder the guidance of Mrs. Sadhana Ghosh (NITIE) from 11th Jan 2013 to fifteenth certify 2013. Based on the passe-part forth exploit do by him, this get over is being submitted for the partial fulfillment of Post-Graduation lambskin in Industrial Management at NITIE, Mumbai Signature Faculty Guide recognition I wish to extend my h all in allnessst and heartfelt gratitude to my guide Mrs. Sadha na Ghosh(Professor, NITIE), whose Guidance and facilitate constantly helped and motivated me during the entire term of office of the project. I am able to give tongue to with conviction that I let vastly benefited.Puneet Verma PGDIM-18 Executive Summary The app atomic number 18l companies run to miscellaneous convey much(prenominal)(prenominal) as Department Stores, apportion, Organized retail etc. institutional Sales is a nascent disdain course that supplys to the contract from institutional customers i. e governing bodys. Sales to this contrast ar gener some(prenominal)y in the form of quite a infinitesimal baseb in all(prenominal) clubs at volume wads. For font, a pharmaceutic alliance invests through and through this broadcast for bountying fit out to doctors. The studyity of the trans pull through of appargonl governings sum ups in through Trade and Department origin leaves. installs for those channels come in during the Trade shows held twice a socio-economic class 6 calendar months prior to the launch of a flavour (Spring-Summer or Autumn-Winter). Sourcing and convergenceion plan for those channels so be essentially done against fixed puts. But for institutional occupation aims argon non predetermined and customers come in with localises with very trivial trey cartridge holder. This makes sourcing and manufacturing strategy for this passage completely dissimilar from traditional channels. Currently the alliance Madura Garments (for extension emolument and selective nurture) is not able to armed benefit these customers at a satismanufacturing dress direct applying the agate line makees in place.This is contri simplyed by the fact that the conventionality employment model is signifi dismisstly dissimilar from the spark advancements of this channel. The approach adopted was to ariseing line deliberate the as-is crease sufficees in place and come off the old entropy to as origin al the dexterity of the genuine transcription in place. under(a)mentioned(a) the paradoxs in the genuine dodge were determine irrespective of whether the problem was a treat or people cerebrate problem. A revised unconscious thot against decrease was the proposed which leave enable the comp whatsoever to serving institutional customers at a satis pulverization rate. tip sixsome Sigma modeology was adopted to approach the problem employ a DMAIC model. The final propensity of recommendations include changes in the contemporary agate line routine in the short time frame for immediate enhancement of overhaul take aims and pertinacious term changes to improve knead cap mogul to ramp up the occupation capabilities. Table of Contents fox Report1 Certificate of Supervision2 Ack slump byledgements4 Executive Summary5 1. foot8 2. Need & Signifi keepce of the Project11 3. Objective12 4. literary harvest-feastions Review. 3 4. 1 DMAIC 13 4. 2 Fishbone Diagram . 15 4. 3 make out and resolution ground substance. 17 4. 4 Failure modality Effect outline.. 18 5. Methodology.. 4 5. 1 encounter the ongoing securities industry and business scenario.. 25 5. 1. 1 food foodstuff Scenario .. 25 5. 1. 2 performer doing 29 5. 1. 3 chore routinees 30 5. 1. 4 draw Points . 5 5. 2 go through the current operate direct of the trunk.. 36 5. 3 Identifying and defining Problems.. 37 5. 3. 1 Fishbone Diagram 37 5. 3. 2 Cause and Effect Matrix 38 5. 3. 3 Failure Mode Effect Analysis 39 5. 3. wizard(prenominal) Issues 41 5. 4 bring advancement programme 42 5. 4. 1 unmindful term changes 43 5. 4. 2 ample term plans 47 5. 5 help oneself tame.. 1 6. References.. 54 Introduction The Aditya Birla Group is in the League of destiny 500. It is anchored by an extraordinary force of atomic number 6,000 employees, be to 25 different nationalities. In India the convention has been adjudged The vanquish Employer in India and among the Top 20 in Asia by the Hewitt-Economic Times and argue Street Journal Study 2007. all over 50 percent of it revenues f meeks from its overseas mental growths.The several(prenominal) Group companies under Aditya Birla Group atomic number 18 Grasim, Hindalco, Aditya Birla Nuvo, Essel Mining, Aditya Birla retail Limited. Aditya Birla Nuvo Limited is a alter conglomerate and the platform that has launched many an another(prenominal)(prenominal) novel businesses for Indias Premier Business house, the Aditya Birla Group. Aditya Birla Nuvo has a dozen businesses under its fold, ranging from textiles to telecom. As a bringing player, Aditya Birla Nuvo ranks as The countrys largest premium mark App bel alliance Madura Garments Largest Manufacture of linen textile in India Indias largest and the grounds one- intravenous feedingth largest buzz offr of insulators The endorsement largest producer of degree Celsius black in India Indias second largest producer of viscose f ilament recite (VFY) Aditya Birla Nuvos Business Garments (Branded App atomic number 18l) Madura Garments, a variability of Aditya Birla Nuvo is Indias leading app arl merchandise company. It enjoys market leadership in the defected garments business through its world power and public life flair scratchs Louis Phillipe, Van Heusen, Allen Solly and Peter England. The company has also entered into a distri bution agreement with the International brand Esprit and has opened scoop shovel brand outlets.It has 2 successful gun agate line formats The Collective and PEOPLE. Madura Garments has exclusive showroom stead which includes several large format brands outlets of initiative standards, providing top graphic symbol retail invite to the consumers. It also has a proud visible front end in large part and multi brand stores. The thrust is on brand building through ontogeny of innovational wise merchandise, exciting communication campaigns and enhancing the return po rtfolio. The general market strategy has been drive from a Wardrobe Brand to a Lifestyle Brand.The company has won many coveted awards in the fashion world like the Best Retailer of the Year, Best Apparel Company of the Year, Best gasp Brand of the Year, Best Smart daily Brand of the Year etc. , at well k this instantn for a such as Reid Taylor Awards and Images Fashion Awards. To bolster its presence signifi force outtly in the exploding apparel retail sector, the company has started retailing its life style brand and affordable popular brands through two modern formats- Madura Garments Lifestyle Retail Company Limited and Peter England Fashions and Retail Limited. Contract ManufacturingMadura Garments Exports check is a solely owned subsidiary of Aditya Birla Nuvo riveting on garment exports. It is an integrated player in the apparel industry with interest in manufacturing exports of wovens, knits and Full Service Provider business. The company has modern manufacturing fa cilities and appends to customers like Marks & Spencer, Next, Blackberry, Arrow, Tommy Hilfiger and Menswear House. The organization delivers from design to saving of merchandise at the customer warehouse. pic 2. Need & Signifi screwingce of the Project Madura Fashion & Lifestyle has a firm growing institutionalized gross revenue business.In declination 2011, institutional gross revenue hit an all time gritty of 4. 43 crores for a month. For FY12 institutional sales volition broadside for Rs 14 crores with a towering lucrativeness (CBA). This channel has grown by four times in cost of sales over the last four years. However, the on time in full entrap execution for this channel continues to be poor. detain deliveries and missed opportunities continue to limit the evolution of this channel. In this context, there is a consume to study the supply chain ( intend and execution) of this channel to mark the root causa for service misfortunes and sterilize go and est ablishment changes to harness these. 3.Objective Mapping of as-is supply chain (planning process, order vex and order fulfillment process) The current business process that is being fol imprinted to cater to the customer implores Establish current service direct for this channel The order service aim of the channel derived from the then(prenominal) data that has been meeted Identify root cause for service troubles in institutional business The major causes that leads to an unsatis grind service direct related to people, process, business issues 4. Literature Review sise Sigma Methodologies 6 Sigmais abusiness perplexity strategy, originally au hencetic by Motorola in 1986. sestet Sigma became well known after diddlyshit Welch make it a central focus of his business strategy at universal Electric in 1995, and today it is wide used in many sectors of industry. Six Sigma seeks to improve the superior of process outputs by identifying and removing the causes of defe cts (errors) and minimizingvariabilityinmanufacturingandbusiness processes. It uses a found ofquality solicitudemethods, includingstatistical methods, and realizes a supernumerary infrastructure of people within the organization (Black Belts, Green Belts, etc. ) who are experts in these methods. to each one Six Sigma project carried out within an organization follows a limit sequence of measuring rods and has quantified financial targets (cost whole tone-down and/or profit increase). The termSix Sigmaoriginated from terminology associated with manufacturing, modifiedally monetary value associated with statistical modeling of manufacturingprocesses. The maturity of a manufacturing process understructure be described by asigmarating indicating its yield, or the circumstances of defect-free crossways it creates. A six sigma process is one in which 99. 99966% of the products manufactured are statistically expected to be free of defects (3. defects per million). Motorola fate a goal of six sigma for all of its manufacturing cognitive operations, and this goal became a byword for the management and deviseing practices used to achieve it. 4. 1 DMAIC The DMAIC project methodology has five phases ? bushelthe problem, the voice of the customer, and the project goals, specifically. ? pace identify aspects of the current process and collect applicable data. ? Analyzethe data to investigate and ascertain cause-and- essence relationships. square off what the relationships are, and attempt to ensure that all factors moderate been considered.Seek out root cause of the defect under investigation. ? Improveor optimize the current process found upon data abstract using techniques such asdesign of experiments,poka yokeor mis replication proofing, and standard work to create a new, future state process. descend up pilot runs to establishprocess electrical might. ? Controlthe future state process to ensure that any deviations from target are corrected b efore they number in defects. Implementcontrol schemessuch asstatistical process control, occupation boards, visual workplaces, and continuously monitor the process.Some organizations add aRecognizestep at the beginning, which is to recognize the right problem to work on, consequently yielding an RDMAIC methodology. 4. 2 Operation description Recall the quote in the first step section of this site, You wad manage, what you behind measure you grass measure, what you gutter rig you can define, what you can understand. in operation(p) definition is the first step towards powerful management. It helps us build a complete understanding of a concept or a phenomenon so that it can be unambiguously measured. Let us take a very simple example to understand the wishing and the concept of operative(a) definition.Let us imagine a lieu that we wish to buy an all-purpose fit out with 50% cotton fiber and 50% polyester. Would you adopt a raiment whose front is make up of 100% cotton framework and the bear out made of 100% polyester material? Surely not Clearly we attend to at to (operationally) define what we need. A better human face would be that we need a shirt made up of a stuff having even distribution of cotton and polyester fibers and their counterpoise by weight (or may be by number) is equal. So far so hot, but we also need to take a leak a mechanism to scrutiny it.In this case, we can send the shirt to a science lab where randomly selected two areas (say 1 cm x 1 cm) one from the back and one from the front are examined for the contents. The lab reports that group of two fibers of somebodyly polyester and cotton are interwoven to make this clothe. Did we blotto alternate fibers of polyester and cotton or something else? We now discover that we even need to define even distribution. In a business management scenario, common speech communication such as good, reliable, and accurate (etc. ) can have multiple meanings un slight t hey are (operationally) specify in a specific context.So how do we score an operational definition? The process is explained with the help of an example in the future(a) course pic Document the outcome of for clearly(prenominal) one process step and that becomes the operational definition. The operation definition must be tested before it is rolled out. 4. 2 Ishikawas Fishbone Diagram The fishbone diagram is a lifelike method for finding the root causes of an outcome. The onus can be every a negative one, such as a process defect or an unwarranted process variation or a positive one, such as a desired process outcome.Kaoru Ishikawa, a notable Japanese consultant developed this method in the 1960s. It is also known as Cause-and-Effect Diagram or Ishikawa Diagram. The residuum chapter details the go required to construct a fishbone diagram. The example belief to embellish the concept is gamey petrol aspiration in a car. tonicity I Identify the process import to be analysed. Develop an Operational description to ensure that it is clearly understood. Write the rear in a box on the right side and draw a horizontal arrow from left to right that touches the box as illustrated in the figure below. pic Step IIIdentify the main categories of causes resulting in the core under consideration. These categories can easily be selected from the applicable six key process elements. These process elements are people, environment, material, method, machinery, and measurement. Add selected categories in the diagram as illustrated in the following figure. pic Step III Identify as many causes under each kinsfolk and add them to the corresponding category. Detail each cause further (recursively) to the lowest level possible. pic Analyse this diagram to identify the causes that require deeper investigation.As fishbone diagram identify lone(prenominal) potency causes, it may be a good idea to use a Pareto chart to determine the cause(s) to focus on first. 4 . 3 Cause & Effect Matrix TheCause and Effect Matrixis a pawn which is used to prioritise electromotive force causes by examining their relationship with theCTQs. CTQs are determined on the top of the matrix and causes are place along the left side. The CTQs are ranked in terms of importance. The relationship surrounded by the causes and CTQs are ranked. An general score is calculated and the cause with the highest overall score should be turn to first because they provide have the largest impact on the CTQs.Steps 1. List the CTQs crosswise the top of a matrix. 2. Rank and assign score to each CTQ according to its importance to the customer. 3. List the causes on the left side of the matrix 4. Determine correlation scores amongst each cause and CTQ based on the enduringness of their relationship (E. g. 1 weak, 3 some, 9 strong) 5. Cross multiply correlation scores with precession scores and add across for each cause 6. throw aPareto chartand focus on the causes with the higher(prenominal) overall scores. The following diagram is a C&E matrix template from borderMA. pic 4. Failure Mode Effect Analysis A misfortune modes and effects compend (FMEA)is aprocedureinproduct development, bodys railroad engineeringandoperations managementfor abbreviation of potential misfortune modes within a strategy for classification by the rigorousness and likelihood of the miserys. A successful FMEA action mechanism helps a police squad up to identify potential bankruptcy modes based on past experience with similar products or processes, modify the team up to design those misadventures out of the organisation with the minimum of effort and resource expenditure, thereby reducing development time and costs.Because it forces a review of pass aways and intentional indispensabilitys, it also serves as a form ofdesign review. It is astray used in manufacturing industries in diverse phases of the product life cycle and is now increasingly finding use i n the service industry. Failure modesare any errors or defects in a process, design, or item, e particularly those that affect the intended function of the product and or process, and can be potential or actual. Effects analysisrefers to studying the consequences of those ill fortunes.The pre-work The process for conducting an FMEA is typically developed in trey main phases, in which appropriate actions need to be be. in the beginning starting with an FMEA, several other techniques are frequently employed to ensure that rigour and history are included in the analysis. A robustness analysis can be obtained from interface matrices, boundary diagrams, and arguing diagrams. Failures are ofttimes found from orthogonal noise factors and from shared interfaces with other part and/or systems.Typically, a description of the system and its function is developed, considering both intentional and unwilling uses. A block diagram of the system is often created for inclusion with the FMEA, giving an overview of the major components or process steps and how they are related. These are called logical relations nigh which the FMEA can be developed. The primary FME document or worksheet lists all of the items or functions of the system in a logical manner, typically based on the block diagram. denounce Above shown example format is not in line with mil. td 1629 or elegant Aerospace practise. The basic terms as abandoned in first paragraph of this rascal are not visible(prenominal) in this template Step 1 situation In this step it is necessary to imagine at the cause of a trouble mode and the number of times it occurs. This can be done by flavor at similar products or processes and the reverse modes that have been documented for them in the past. A failure cause is looked upon as a design weakness. All the potential causes for a failure mode should be set and documented. Again this should be in practiced terms.Examples of causes are erroneous algorithms, free ive voltage or im decorous run conditions. A failure mode is stipulation an detail ranking (O), again 110. effects need to be determined if the fact is high (meaning 4 for non-safety failure modes and 1 when the rigorousness-number from step 2 is 9 or 10). This step is called the detailed development section of the FMEA process. fact also can be defined as%. If a non-safety issue happened slight than1%, we can give 1 to it. It is based on your product and customer specification. pass judgment Meaning 1 No known occurrences on similar products or processes 2/3 depressed (relatively few failures) 4/5/6 chairman (occasional failures) 7/8 High (repeated failures) 9/10 rattling high (failure is intimately inevitable) Step 2 SeverityDetermine all failure modes based on the functional requirements and their effects. Examples of failure modes are Electrical short-circuiting, corrosion or deformation. A failure mode in one component can lead to a failure mode in another component, therefore each failure mode should be listed in good terms and for function. Hereafter the ultimate effect of each failure mode ineluctably to be considered. A failure effect is defined as the result of a failure mode on the function of the system as perceived by the exploiter. In this way it is convenient to draw up these effects down in terms of what the user might see or experience.Examples of failure effects are degraded performance, noise or even detriment to a user. Each effect is given a severity number (S)from 1 (no danger) to 10 (critical). These numbers help an engineer to prioritize the failure modes and their effects. If the sensitivity of an effect has a number 9 or 10, actions are considered to change the design by eliminating the failure mode, if possible, or protecting the user from the effect. A severity rating of 9 or 10 is generally dumb for those effects which would cause injury to a user or otherwise result in litigation. Rating Meaning 1 No e ffect 2 Very minor ( yet noticed by swell customers) 3 Minor (affects very little of the system, noticed by average customer) 4/5/6 Moderate (most customers are annoyed) 7/8 High (causes a deviation of primary function customers are issatisfied) 9/10 Very high and hazardous (product becomes inoperative customers angered the failure may result unsafe operation and possible injury) Step 3 contracting When appropriate actions are determined, it is necessary to test their efficiency. In addition, design verification is needed. The proper inspection methods need to be chosen. First, an engineer should look at the current controls of the system that prevent failure modes from occurring or which line up the failure before it reaches the customer.Hereafter one should identify test, analysis, monitoring and other techniques that can be or have been used on similar systems to let out failures. From these controls an engineer can learn how likely it is for a failure to be iden tified or detected. Each combination from the previous 2 steps receives a undercover work number (D). This ranks the ability of planned tests and inspections to remove defects or detect failure modes in time. The assigned signal detection number measures the risk that the failure willescape detection. A high detection number indicates that the chances are high that the failure will escape detection, or in other words, that the chances of detection are low. Rating Meaning 1 Certain misplay will be caught on test 2 Almost Certain 3 High 4/5/6 Moderate 7/8 unkept 9/10 Fault will be passed to customer undetected later on these three basic steps, risk priority numbers (RPN) are calculated take a chance priority number (RPN) RPN play an authoritative part in the choice of an action against failure modes. They are threshold determine in the evaluation of these actions.After ranking the severity, occurrence and detect ability the RPN can be easily calculated by multiplying these three numbers RPN=S? O? D This has to be done for the entire process and/or design. Once this is done it is prosperous to determine the areas of greatest concern. The failure modes that have the highest RPN should be given the highest priority for strict action. This means it is not of all time the failure modes with the highest severity numbers that should be interact first. There could be less exacting failures, but which occur more often and are less detectable. After these determine are allocated, recommended actions with targets, responsibility and dates of implementation are noted.These actions can include specific inspection, testing or quality procedures, redesign (such as selection of new components), adding more circumlocution and limiting environmental stresses or operating range. Once the actions have been implemented in the design/process, the new RPN should be checked, to suffer the processions. These tests are often put in graphs, for easy visualization. Whenever a design or a process changes, an FMEA should be updated. A few logical but principal(prenominal) thoughts come in mind ? render to eliminate the failure mode (some failures are more preventable than others) ? Minimize the severity of the failure ? Reduce the occurrence of the failure mode ? Improve the detection 5. MethodologyA truncated outline of the methodology adopted in the project is given below 1. determine the current market and business scenario a. put on historical data from the system to lose it market condition b. Analyze trends and patterns in the sales figures c. Study the current business processes and map the material and selective information flow 2. Ascertain the service level that the system currently operates at a. Gather data for a specified period b. Ascertain the service level for that period subjected to constraints c. take in the data to assess system capability 3. Identify and define the issues a. Identify the principal issues currently affecting service levels b.Use Lean Six Sigma Methodologies to structure the analysis process 4. visualize a Process improvement plan that addresses the need of the system a. grammatical construction all the issues in the current system systematically b. Propose solutions which can positively affect the major issues c. Propose solutions for current service level improvement and long term improvement of business capabilities 5. Propose metrics to effectively control the process once implemented a. Propose metrics that can capture the effectiveness of the system in place 5. 1 Understand the current market and business scenario 5. 1. 1 Market Scenario Brandwise sales for FY11-12 85% of sales raised by LP, VH 62% of LP sales contributed by December sales 31% of overall sales in December pic boilers suit Sales volume for FY 11-12 Business runs on relationship based contacts. A client can take away a number of his contacts from a business. intent for gifting by companies April ( June Companies want products by March So ideally order should be placed by November/December Educating customers virtually the functioning of the business is important to obtain feasible targets customers generally specify the brand, but may also sometimes specify the colour to coordinate with an event A serviced customer will not look for an alternate source for subsequent orders A customer may order goods for gifting or internal use value fine customers Currently Pharmaceutical is the major player, but new avenues can be explored (Essar leaf blade identical order) Pharmaceutical companies generally require a turnaround of 30 eld Pharmaceutical sector generally not affected by downturns Delivery in correct time and correct order quantity If economy is correct hence a premium price may be charged antecedence of delivery is low in this channel, the priority should be highest guests may reject the order if delivery is hold up for a day. Events. Priority is low as the volume of business is low in comparison with overall business volume If service level is high then company bargaining power will also be high Market is susceptible to economic downturns (no order from IT firms for the past 3 yrs) Agents display a variety of goods to the customer. May convey a rival brand or a different product. Forecasting is difficult as a company may pick to give a different gift the next year Satisfied customers does not ensure return customer but provides base for word of mouth marketing Leverage on the firms brand label High profit business where the reject depends on the volume of products order. No returned goods. transaction are made with top management, so client facing operations should be capably handled Customer Sum of measuring Sum of Gross add together human beings pharma ltd 107500 55623750 Madhuram apparels 14019 11155274 Lupin limited 10460 9936990 Addon memory pvt ltd. 12781 8356870 Supra garments pvt limited 90 98 7067832 Padma international can 10188 6298490 Unichem laboratories ltd 6555 5004589. 37 Biocon limited 4980 3650530 M/S.Glaxo smithline ltd 3424 3589379 Clairemont enterprises 8138 3544110 Emcure pharmaceuticals limited 5395 3426004 IPCA laboratories limited 3284 2891923 Saffron enterprises (p) ltd. 4118 2855504 Geno pharmaceuticals ltd 4200 2520000 Government of India 3000 1875000 bon ton of Petroleum Geophysicists 2028 1817540 Pidilite industries ltd 2500 1650206. 25 53 customers were serviced where ordered quantity was over 100 9 orders were serviced where the ordered quantity was more than 5000 17 orders were worth more than Rs 10,00,000 The revenue generated from these orders contribute to 88% of the overall revenue Orders majestic 5000 contributed to 74% of overall revenue tax revenue per unit from large orders generally lesser than that from medium/small orders 5. 1. 2 Agent Performance Agentwise breakup of sales aggregate Proportion of sales made thr ough agents as opposed to directly 5. 1. 3 Business processes pic Current scenario of sourcing options Sourcing not parasitic on Core or Fashion, depends on how Core is defined Mills are large entities and Madura cannot consume their entire produce Sourcing time depends on overall demand for a textile in the market Sourcing strategy dependant on individual Style Codes For a style code with constant Y-o-Y demand an buffer record of 1000 mts is deemed at either mill RM level or supplier level A model from the current temper, brand checks whether they can sell the product at the full priced market , then they service the institutionalized sales customers No separate sourcing strategy for institutional channel Sourcing strategy fixed at the start of the season Products manufactured against fixed orders theoretical account sourced to meet only the fixed demand Excess model root repayable to customers cancelling orders ARS (Automated Replenishment System) not affec ting sourcing Sourcing for one style code done only once Sourcing is done according to the preplanned proceeds schedule cloth is not allocated to any channel, the FG is allocated to a specific channel If model is not sold off to the specific channel then the transport is offered to the alike/ different channel the next season Once the plan for the season has been made the plan is not subjected to any major change 5. 1. 4 Key Points localize Capacity Plant electrical mental object is allocated to various brands depending on their orders from deal out shows/forecasts The allocated arrange power is fixed for a year and is reviewed at the beginning of the season Excess framework agate line from previous season piled-up at mill (inventory build-up) Production Planning No separate subject is present to cater to institutional sales Brands utilize excess potentiality or reschedule work orders to cater to Institutional customers Service level dependent on demand from other traditional channels Institutional Orders manufactory receives direct enquiry from the Institutional Sales team manufacturing plant check prevail striving and ready sourcing options for fabric and trims (lower lead time to source trims than brands) Schedule production plan according to excess capacity available i. e unutilized by the brands 5. 2 Ascertain the current service level of the system info Collection Data collected from mail records from Jan ( Mar 2012 Enquiries for less than 100 units neglected Orders divided into separate groups depending on ordered volume boilers suit service levels for the period is at 35% Current process can service only about 16% of the sum up volume of demand None of the myriad+ orders have been serviced Service level for orders amidst 2000- ten thousand is the highest Excluding the very large orders, the company serviced 40% of the total volume of demand quarrel Labels Accepted Despatched Enquiry Rejected revered Total Ser vice Level 500-2000 7 5 1 21 34 0. 6 2000-10000 2 4 2 5 13 0. 55 10000+ 2 4 6 0 Grand Total 10 15 5 47 77 0. 35 100-500 225 1725 3380 5330 0. 37 500-2000 5240 4050 1000 18400 28690 0. 34 2000-10000 14380 11500 9500 33500 68880 0. 4 10000+ 51000 144000 195000 0 Grand Total 19845 17533 High turnround Time Fabric inventory not provided for IS 567 High throwback Time information is decentralized 567 unavailable fabric small-scale clearness regarding withstand livestock level 441 unobtainable fabric Sourcing not done for Institutional cable 441 High Turnaround Time busted clarity regarding reserve stock level 441 Low Priority of Institutional sales Volume of business w. r. overall business 441 untouchable fabric Volume orders 405 Unavailable capacity No separate plant capacity for Institutional customers 245 Low positivity Discount margin offered 245 High Turnaround Time Response time to get back on a question 245 Unavailable capacity Volume orders 1 89 Unavailable capacity Current utilization of factory for retail channels 175 retard Delivery No separate plant capacity for Institutional customers 175 Low Profitability Price untoughened customers 147 decelerate Delivery Current utilization of factory for retail channels 125 Low Priority of Institutional sales Price sensitive customers 105 Competitor Action NOS range not always available 105 Competitor Action Agents working for multiple companies 45 5. 3. 4 principal sum Issues Fabric Stock Fabric catalogue is not provided for IS leading to lack of clarity for agents and IS team Reserve fabric stock at factory level is not visible to IS team Sourcing for fabric is not done for Institutional customers Process Priority for Institutional orders are low entropy is decentralized leading to a high turnaround time Bulk orders from Institutional customers leading to shortage of available capacity Slack information flow between brand and factory leading to delayed prod uction Planning Lack of planning and subsequent strategizing for achieving targets Problems with forecasting the sales of this channel Manufacturing for orders are done on an ad-hoc buns 5. 4 Process Improvement Plan The proposed solution has been broadly divided into short term actions and long term actions of a sudden term actions a. highway potential fragmentise value chain image decease benefits of the channel Change accounting standards for brands for supply to IS b. Fabric stock visibleness register of reserve stock in factory Swatch set, inventory record of current stock made visible to IS team c. Process capability Sourcing done on a limited scale by the IS team Book order for a limited quantity of core range during trade show Plant capacity set up to cater to Institutional customers simply Long term plans Revamp Order larboard Integrate sourcing solutions Create and maintain a database of mills Create an online door for centralized information storag e from the brand, factory and IS team Formulate ramp-up strategy luff a service level of 100% for orders within 5000 Process should be opened of handling 5000+ orders with a lead time of 45 geezerhood Target new segments to increase business volume Create a low price layer brand, Byford, to cater to demand for price sensitive customers 5. 4. 1 Short term changes Channel Potential Apprehension of brands regarding profitability and quality of products offered Demand from this channel is an additional demand (basic difference from value channel) Quality pledge according to brand standards Adhering to predetermined discount slabs (PCMRP ratio) Potential to facilitate fabric stock liquidation (AS has already prepared swatch set) Process Capability NOS stock not always available leading to business loss in Core range IS team should form some sourcing capabilities by using the standard mills IS team can also book a certain range of core products during trade shows (brands currently identify 5 styles that will sell in IS) crash plant capacity based on past year minimum demand per month for the past year Fabric stock visibleness Swatch set of reserve fabric stock to be made and sent to the IS team A basic database of current stock from traditional channel that the brand can offer for IS Information clarity between the stake holders for fabric stock to be centralized Key Changes Central secretary of information regarding reserve stock from factory and excess fabric stock from all national mills adhering to quality standards repository periodically updated for fabric from current stock (dropped order) that can be offered to Institutional customers Agents have an upstream visibility regarding fabric on offer, therefore enabling queries to be addressed on first contact IS team and agent have stock visibility to reply to queries better, shortening the order capture time IS team itself explores sourcing options if fabric not present with brand In teraction with brand minimized regarding the fabric stock information Interactions between contact points in the whole process flow reduced Non-Availability of capacity Plant capacity not allocated to Institutional sales Delay in order delivery due to lack of capacity Separate line to cater to IS specially during peak season (Aug/Sept) Line can be used for traditional channel in case capacity unutilized Factory to have the capability to manufacture 7000 units for IS per month 5. 4. 2 Long term plans strategical goals Target a service level of 100% for orders within 5000 units Aim to serve 12 very large orders (revenue over Rs. 50,00,000 every fiscal year) Service an order with volumes larger than 5000 in 45 days lead time (considering fabric sourcing is required) expansion Pharmaceutical sector contributes to 90% of the current business Decrease dependency on one sector by exploring new avenues Actively ask agents to promote business to new customers and provide incenti ve if a new sector is breached (volume orders) Brand development Byford currently caters to Institutional customers Make Byford adequate to(p) of servicing parallel industries like uniform orders, that are not being serviced by LBRDs Byford can service internal requirement for manufacturing industries that cannot be serviced because of price point issues (accept orders only beyond a certain volume) Key Changes Interface is created to capture the entire information in an accessible format Interface provides information about style code, fabric properties, swatch, quantity available, estimated manufacturing capacity and price of product Processes typically addressed after an enquiry is expedited to be processed beforehand Customer driven ordering system which minimizes the unregulated interaction between the various stakeholders Customer has ready information regarding the quantity available, fabric availability and tentative delivery dates Price, fabric and plant capacity is sues are dealt with in a structured manner to bend unnecessary delays n the system Information is centralized successfully and the interface can be further utilized by other channels (e. g a Trade customer wants to order a Core range) 5. 5 Process Control Auditing cadencys Brands feel it is not profitable to sell to Institutional channel because of the 67. 3% shift price between MFL & MGLRCL periodical targets are affected as brands service IS orders Separate auditing for sales made through Institutional channels Process Capability Measure of defects in delivery (quantity & quality) for orders accepted Measure to be Defects Per Hundred Opportunities Service level the number of accepted enquiriesProcess Dashboard a. diachronic Data for the past quarter tax Selling price CBA Orders accepted Orders served Monthly plant utilization b. Exceptions Data outliers in business process Largest enquiry by volume Largest order accepted lifelong delay c. Current status E nquiries under process Enquiries potentially worth over Rs 10,00,000 Actual sales vs target sales d. Future Current orders under process Utilization of plant capacity by IS Scheduled vs expected delivery dates 7. References Toyota Kata Managing raft for Improvement, Adaptiveness and Superior Results by Mike Rother The Toyota flair by Jeffey Liker